After undergoing a board restructure, Oakdale Resources (ASX: OAR) has made a bid to acquire private entity Alpine Resources (USA), which owns the Alpine gold project in Nevada, which was recently rated a world top three mining jurisdiction by Fraser Institute.
Three main deposits have been firmed up at the project and are known as Tonopah North, Douglas Canyon and Lambarson Canyon.
Oakdale believes the project could host the Carlin trend and epithermal-style gold mineralisation – which has underpinned million-plus ounce gold deposits in the region.
To secure its exclusive option to acquire all the issued shares of Alpine, Oakdale will make a non-refundable US$15,000 payment before the end of July.
If Oakdale elects to proceed with the option to acquire Alpine, it will hand over US$200,000, which Alpine will use to fund an initial exploration program as part of the due diligence process.
This preliminary program is to be completed within three months and will involve geophysical surveys and securing drill permits.
The second exploration stage will comprise 800m of diamond drilling at priority targets and will cost up to US$456,000, which Oakdale will fund and Alpine will manage.
On completion of the second stage drilling program, Oakdale can exercise its option to acquire Alpine and its assets for no further cash payment.
However, Alpine shareholders will be entitled to 30 million Oakdale shares when the option is exercised.
Alpine holders will then be eligible for 25 million more Oakdale shares on publication of a JORC resource with 500,000oz of gold or gold equivalent. A further 25 million Oakdale shares will be issued upon Oakdale releasing a 1Moz gold JORC resource.
According to Oakdale, Nevada is the sixth largest gold producing “nation” in the world – contributing 74% to total US gold output.
The region comes with low political risk, high quality infrastructure and a skilled workforce, along with Fraser Institute’s ranking as a world top three mining jurisdiction.
Oakdale pointed out that “important discoveries” continue to be made in established trends of Carlin and Cortex-Battle Mountain, with much of Nevada’s eastern parts and the western Utah region remaining underexplored.
Today’s news follows the company’s openly reported decision to focus on pursuing gold assets in various regions.
Earlier this year, Oakdale revealed a board reshuffle, which involved John Lynch stepping down as managing director, and the resignation of non-executive directors Andrew Harrington and Graham White.
Mr Lynch has remained on the board as a non-executive director, while Chris Gale has assumed the role of executive chairman.
David Vilensky joined the board as non-executive director, while Jon Grygorcewicz has been appointed chief financial officer.
Investors reacted positively to the acquisition news, with Oakdale’s share price up more than 26% to $0.019 by mid-afternoon.